BE lecture 9 10 stakeholder 之 供应商

• Source: Transparency International (/)
Which industry is more likely to engage in bribery to public officials?
• • • • • • • • • • Oil &Gas Agriculture Telecommunications & Equipment Real estate and property development Fisheries Banking & Finance Public works contracts &construction Pharmaceutical & medical care Arms and defence Hotels, Restaurant & Leisure
Heinz Baked Beans Distribution
KITT GREEN
PRIMARY STORAGE AND DISTRIBUTION
SECONDARY STORAGE AND DISTRIBUTION
TERTIARY STORAGE AND DISTRIBUTION
END CUSTOMER
EXPORT
Ethical issues for suppliers (1)
• Individual issues
– Gifts, bribes and hospitality
• Consider the intention of the gift giver • Look at the impact on the receiver • Focus on the perception of other parties
KITT GREEN
TOMATOES
HARVEST CLEANING PROCESSING STORAGE TRANSPORT
GLUE CAN CODING LABELS INKS
Example – supplier relationship as part of an industrial network (2)
– Poorer labour conditions – Less environmental protection – Lower attention to heath and safety
• Implications of global supply chain • Individual firms appear to be faced with prospect of an extended chain of responsibility
– Code of conducts
• Many large organisations setting up a formal code – e.g., Procurement Code of Conduct • Guidelines by professional bodies – e.g., the International Chartered Institute of Purchasing and Supply (/)
MSc Business Ethics week 9
Suppliers
/management
Suppliers as stakeholders
• Stakeholder of a corporation:
– An individual or a group that either is harmed by or benefited from the corporation or whose rights can be violated, or have to be respected, by the corporation (Evan and Freeman, 1993).
• Impacts on indigenous businesses
– Size, power and political influence of MNEs and exposure to the competition
• Differing labour and environmental standards
• Organisations and their suppliers can be seen as mutually dependent.
Example – supplier relationship as part of an industrial network (1)
Heinz Baked Beans Supply
– Sourced through global supply chain: “race to the bottom”
Ethical problem andosts often accompanies by ‘sweatshop’ condition
MILD STEEL ROLLING MILL TINNING MILL FOOD GRADE SOLDER ANCILLARY SUPPORT PLATE MILL HARICOT ‘NAVY’ BEAN
HARVEST CLEANING STORAGE TRANSPORT
CAN MANUFACTURE VINEGAR SALT SUGAR CORN FLOUR SPICES
Score 8.8 8.8 8.7 8.7 8.6 8.6 8.6 8.5 8.1 8.1 8.1 7.9 7.6 7.5 7.5 7.5 7.4 7.4 6.8 6.6 6.5 5.9
Bribery Payers Index 2008
• Scores range from 0 to 10, indicating the likelihood of firms headquartered in these countries to bribe when operating abroad. • The higher the score for the country, the lower the likelihood of companies from this country to engage in bribery when doing business abroad.
Country Belgium Canada Netherlands Switzerland Germany United Kingdom Japan Australia France Singapore United States Spain Hong Kong South Africa South Korea Taiwan Italy Brazil India Mexico China Russia
– My business? Your business?
Strategies to ‘ethical’ sourcing
Disengagement • Setting of clear standards for suppliers and a means for assessing compliance with these standards • Failure to meet standards in short / medium term will result in disengagement by the company • e.g., Reebok's “Zero tolerance” policy on child labour Engagement • Rely on longer term ‘aims’ together with incremental ‘target’ in order to foster a step-bystep approach to improve standards • Firms likely to work with their suppliers to achieve improvement • e.g., Wal-Mart
Tutorial questions – Bitter Sweet
• What individual and a group of individuals are involved until the crops reach to the UK land? • Any ethical issues in the process? • What would you suggest to do if Mark were to have a ‘better’ life?
Ethical issues for suppliers (2)
• Organisational level issues
– Misuse of power; the question of loyalty; preferential treatment; conflicts of interest